Corporate Overview beyond pioneering
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Corporate Overview beyond pioneering
Who We Are
Bruining 1 st
Erkelens
• Five (5) unique cultivars have been
5
standardized and commercially accepted
as raw material for the production of
Active Pharmaceutical Ingredients (“API”);
• Standardized placebo is also available for
clinical and scientific trials;
Standardized Cultivars
DROge (= ‘dry’) • Patients, researchers, and
18
pharmaceutical partners in over a dozen
countries and jurisdictions count on
Bedrocan’s products;
• Governments, corporates, and research
CANnabis
institutions (NGOs, CROs, etc.) favor the
Jurisdictions served Bedrocan product suite
• Established 1984
30
• Preferred provider to the Office of
Medicinal Cannabis (“OMC”) in the
Netherlands since 2003, ten (10) years
prior to the establishment of the MMPR in
Canada
Years experience
2
Facts and Figures
Operating Statistics Select Financial Statistics*
40 G ro w R o o m s
w o rld w id e
62%Kgs Sold CAGR 2013-2017
53%Revenue CAGR 2013-2017
18 80% Production Capacity CAGR
Ju risd ictio n s
w h e re B e d ro can
p ro d u cts are
10
availab le
Years Fiscal Growth
* O r g a n ic C A G R s d e fin e d a s w ith o u t M & A a c tiv ity
3Once upon a time…
4Corporate Timeline
Start – Program – Start – Expansion – GMP – Expansion
Founding of Dutch Health Official start Start USA team Good Capital –
Bedrocan as an Minister starts under the Dutch and start new manufacturing BI prepares for
agricultural medicinal medicinal production practice (GMP) global expansion
company cannabis cannabis facility in Czech and opening and large equity
program program Republic new Dutch infusion
facility
1984 1999 2003 2015 2017 2018
1992 2002 2014 2016 2017
Seeds – License – Canada – Australia – Outside
First production Bedrocan is New facility Start Bedrocan Investment –
of cannabis awarded 1 s t under Canada Brazil and plans Bedrocan
seeds license to grow Health and for Australia accepts its first
medicinal opening new become reality funds from an
cannabis Dutch facility outside investor
5Global Market for Cannabis and Market Environment
Current Regulation Legality of Possession of Small Amounts of Cannabis
• As of the date of this publication, medical use of cannabis is legal in
Canada, Israel, Belgium*, Austria* Netherlands, Czech Republic,
Denmark (4-year pilot project), Estonia, Spain, Greece, Portugal,
Croatia, Mexico, Chile, Uruguay, Poland, Finland, Norway,
Macedonia, Germany, Jamaica, Australia, Italy, Colombia, Slovakia,
Lesotho and Switzerland;
• Cannabis is classified as a Schedule IV drug in the UN Single
Convention on Narcotic Drugs (the “Convention”); the Convention,
however, allows independent nation states the choice of establishing
cannabis for medical and scientific purposes. L e g a l o r E s s e n tia lly L e g a l Ille g a l
Ille g a l b u t d e c r im in a liz e d N o in fo r m a tio n
* O n ly w ith p r e s c r ip tio n o f s p e c ia lis t d o c to r
Ille g a l b u t u n e n fo r c e d
Regulatory Outlook
Exemptions for Medical Use
• The US does not show a sign of uniform legislation on the near term,
although states are increasingly moving toward recreational use and
robust medical use programs. The preponderance of states have
legalized cannabis in some capacity, and only a single digit few still
enforce misdemeanor possession laws on the books;
• In Canada, legislation allowing for national adult use is set to take
effect on October 17, 2018, with nationwide dispensaries and other
distribution outlets set to open to an eager adult use population;
• Experience in the US and Canada suggests that, once in place,
medical cannabis laws are difficult to repeal, which may be due to a
multitude of factors such as acceptance by the population at large,
M e d ic a l U s e L a w s in P la c e
increased tax revenues, lower healthcare spending, and other social
S o u r c e s : U N O D C , D E A , F r o n tie r F in a n c ia ls G lo b a l L e g a l C a n n a b is R e p o r t.
and economic considerations. 6The Dutch Model – The Office of Medicinal Cannabis (“OMC”)
• Established 2000;
• Part of the Dutch Health Ministry;
• Responsible for production, distribution
(export) and quality;
• Mandator of Bedrocan Nederland (Dutch
licensee of Bedrocan International);
• Monopoly on trade of all raw cannabis
(similar to production of poppies);
• www.cannabisbureau.nl (EN pages too).
7Regulatory and Commercial Landscape
United States Canada Netherlands Europe
N in e (9 ) s ta te s h a v e p a s s e d fe d e ra l le g is la tio n fo r
S c h e d u le 1 N a rc o tic in th e C S A ; S c h e d u le 2 N a rc o tic in th e C S A G o v e rn m e n t a s c o u n te rp a rty c re a te s p a rtn e rs h ip &
Federal Regulation / A d v e rs e E x e c u tiv e b ra n c h & e n fo rc e m e n t p o lic y ;
M e d ic a l u s e le g a liz e d s in c e 2 0 0 2 / re c re a tio n a l u s e
le g itim a c y ;
m e d ic a l c a n n a b is c o n s u m p tio n (B I h a s lo n g
s ta n d in g re la tio n s h ip s w ith e a c h ju ris d ic tio n );
Enforcement Policy a llo w e d fro m O c to b e r 1 7 2 0 1 8
N o n -c o m p lia n t w ith U N tre a tie s
S c a le & in te rs ta te c o m m e rc e p ro h ib ite d G o v ’t to G o v ’t (“G 2 G ”) s u p p ly c h a in ; P u b lic / P riv a te p a rtn e rs h ip s
F u ll d e p o s ito ry , w ire , tre a s u ry s e rv ic e s b y m u ltip le F u ll d e p o s ito ry , w ire , tre a s u ry s e rv ic e s b y m u ltip le F u ll d e p o s ito ry , w ire , tre a s u ry s e rv ic e s b y m u ltip le
Access to Banking / L im ite d a n d in c o n g ru e n t a c c e s s (o fte n a t g lo b a l in v e s tm e n t a n d m e rc h a n t b a n k s ;
R e v o lv in g , p ro je c t fin a n c e , a n d re a l e s ta te fa c ilitie s
g lo b a l in v e s tm e n t a n d m e rc h a n t b a n k s ;
R e v o lv in g , p ro je c t fin a n c e , a n d re a l e s ta te fa c ilitie s
g lo b a l in v e s tm e n t a n d m e rc h a n t b a n k s ;
R e v o lv in g , p ro je c t fin a n c e , a n d re a l e s ta te fa c ilitie s
Depository Services c o n s id e ra b le p re m ia ) b e tw e e n / a m o n g th e s ta te s
a v a ila b le a t c o m m e rc ia l ra te s ; a v a ila b le a t c o m m e rc ia l ra te s ; a v a ila b le a t c o m m e rc ia l ra te s ;
N o a d v e rs e ta x N o a d v e rs e ta x N o a d v e rs e ta x
Tax Considerations § 2 8 0 E D e d u c tio n L im ita tio n
A c c e s s to a g ric u ltu ra l, b io te c h , a n d p h a rm a A c c e s s to a g ric u ltu ra l, b io te c h , a n d p h a rm a A c c e s s to a g ric u ltu ra l, b io te c h , a n d p h a rm a
s u b s id ie s a n d g ra n ts s u b s id ie s a n d g ra n ts s u b s id ie s a n d g ra n ts
+ 1 1 8 L ic e n s e s Is s u e d – fre e m a rk e t p o lic y ; P re fe rre d p ro v id e r to O M C fo r fifte e n (1 5 ) y e a rs ; L im ite d lic e n s in g
D is p a ra te lic e n s in g re g im e s b e tw e e n / a m o n g
s tric t re g u la tio n s to p ro h ib it d iv e rs io n a n d to P u b lic te n d e r d is b u rs e d e v e ry 3 -5 y e a rs ;
Licensing s ta te s g u a ra n te e m in im u m q u a lity ; S e p a ra te te n d e rs fo r m e d ic a l & re c re a tio n a l u s e to In d o o r C u ltiv a tio n ; 3 + y e a r h is to ry o f C O A s ;
N o s tric t s e p a ra tio n m e d ic a l/re c re a tio n a l b e ra tifie d in 2 0 1 9 C h e m ic a l p ro file s s im ila r to B I C u ltiv a rs ;
Quality and “C o m p a s s io n a te U s e ” N o n -p h a rm a c e u tic a l re g u la tio n (A C M P R ) S tric t S ta n d a rd iz a tio n to G A C P a n d G M P
S tric t s ta n d a rd iz a tio n a s m e d ic a l c a n n a b is v ie w e d
standardization (n o s ta n d a rd iz a tio n re g u la tio n ) F o r m e d ic in a l a n d re c re a tio n a l u s e (N o n -c o n fo rm in g c ro p s d e s tro y e d )
a s a p h a rm a c e u tic a l p ro d u c t in E U ;
Requirements G A C P a n d G M P s ta n d a rd iz a tio n
Total Addressable 3 3 0 m illio n * 3 7 m illio n 1 7 m illio n 7 5 0 m illio n
Market (Population)
Total Addressable $ 5 0 -5 5 b illio n (1) $ 4 .3 – 7 .5 b illio n (2) $ 1 .5 – 3 .0 b illio n (3) $ 1 0 0 -1 2 5 b illio n (4)
Market ($)
(1 ) M a r i ju a n a B u s i n e s s D a i l y E s t i m a t e d D e m a n d , l e g a l a n d b l a c k m a r k e t .
(2 ) B N N B lo o m b e r g ; C a n a d a ’s le g a l c a n n a b is m a r k e t b y t h e n u m b e r s
(3 ) O p e n S o c ie t y F o u n d a t io n e s t im a t e s > $ 4 0 0 m illio n in t a x r e c e ip t s b y D u t c h A u t h o r it ie s in 2 0 1 3 f r o m c o f f e e - s h o p s ..
(4 ) In d u s t r y e s t im a t e s b a s e d o n p o p u la t io n , g e o g r a p h y , a n d p r o p r ie t a r y m a r k e t r e s e a r c h .
8Views on European Cannabis Market
European cannabis market Select Forecast
• Europe is destined to become the world’s largest medical cannabis
market because the Continent will require fully registered cannabis
medicines in its market, and will hold those medicines to
pharmaceutical and GMP standards throughout.
• Driven in large part by pharmacies and physicians, European
cannabis agencies will enforce Good Manufacturing Practices
(“GMP”) and public healthcare coverage policies that will ensure high
standards from the cannabis industries. Only companies that are
able to meet and maintain these high standards, will survive in the
European cannabis industry.
• Recreational cannabis is very unlikely to become widely regulated in
Europe as it is in the US and Canada, as the compassionate use
systems of the Western Hemisphere are unlikely to cross the ocean
to Europe.
Unique position
Bedrocan is likely to become the key-cultivator because:
• Nearly three decades of experience in cultivating top-quality medical
cannabis in the most scrutinized government-to-government
supply chain on the planet;
• Assisted governments around the world in understanding the Dutch
Framework of cannabis regulation, and seeks to export regulatory
influence and commercial discipline in every new market it enters;
• Acquired GMP certification for its whole cultivation process.
930 years in business
10Global presence (Office or facility)
N e th e rla n d s
1984 C ze c h R e p
2014
*C a n a d a
USA
2014
2015
*B ra zil
2016
A u s tra lia
2016
B e d ro c a n c u rre n t p re s e n c e
11
*Jurisdiction subject to moratorium between Canopy and BedrocanExportation to the world
*B ra z il
*C a n a d a
N e th e rla n d s
Ita ly
P o la n d
Is ra e l
D e n m a rk
F in la n d
A u s tria
G e rm a n y
M a c e d o n ia
N o rw a y
Sw eden
C ze c h R e p
U n ite d K in g d o m
S w itz e rla n d
A u s tra lia
M a lta
B e d ro c a n c u rre n t p re s e n c e
12
*Jurisdiction subject to moratorium between Canopy and BedrocanCorporate Partnerships
Pharma Research Organizations
Governments Academic
13Professional Team and Industry Advisors
Legal Financial
Consulting Other
14Questions?
15Corporate
Overview
Tjalling Erkelens Mauricio Agudelo, JD CFA
Founder, Chairman, and CEO Chief Financial Officer
t.erkelenes@bedrocan.com m.agudelo@bedrocan.com
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